Looks like Ford is getting serious.Liontown’sdecision to build...

Looks like Ford is getting serious.

Liontown’sdecision to build the Kathleen Valley mine in WA’s northern Goldfields camedespite a big increase in upfront capital costs for the mine from $473 millionin its feasibility study to $545m, a nod to both optimisation and expansion ofits feed scope and general inflation across the mine site constructionbusiness.

Butit will be funded with the help of the famous Ford Motor Company.

Thebrand of the Model-T and sponsor of the Geelong Cats have demonstrated thedesperation of auto giants to get their hands on lithium supply.

Notonly will it join Tesla and LG among Liontown’s spodumene customers, taking upto 150,000tpa by the final three years of a five-year deal, but a subsidiarywill also stump up $300 million in a funding facility which will help bankroll the project alongside a$463 million capital raise completed last year.

Fordfinance is not just for hatchbacks it seems.

“Thesigning of our third and final foundational offtake agreement is a momentousmilestone for Liontown and the Kathleen Valley project, with approximately 90%of Kathleen Valley’s start-up capacity now under secured long-term bindingofftake agreements,” said Liontown’s managing director and CEO Tony Ottaviano.

“Ourdisciplined approach to our offtake strategy has enabled us to build a customerbase of Tier-1, globally significant customers in
the EV battery supply chain, validating Kathleen Valley’s status as a globallyrelevant lithium asset.”

FordVP of EV industrialization Lisa Drake said the US car giant plans to delivermore than 2 million EVs on its own by 2026. The EV market globally sold around6.6 million units in 2021.

“Thisis one of several agreements we’re working on to help us secure raw materials tosupport our plan to deliver EVs for customers around the world and meet ourenvironmental, social, and governance commitments,” she said.

maybe I am an optimist, but I think, Lake also has a foot in the door! "One of several agreements!"